Introduction

Over the past few years, Equity Capital & Securities (London) has developed expertise in conducting professional Due Diligences connected with a wide variety of situations.

Why a Due Diligence?

The "Due Diligence" is a process whereby Equity Capital & Securities (London) seeks sufficient information about a business entity to reach an informed judgment as to its value for a specific purpose.

A Due Diligence can also be performed in a wide variety of other situations such as:

• A Firm considering a potential acquisition
• An Investment Banker considering underwriting a public security offering or promoting a Private Placement
• A Banker considering the making of a loan
• A Lawyer preparing an offering statement or a merger proposal for a client
• An Appraiser who has been retained to estimate the value of a business unit
• A Business Broker offering a company for sale
• A Public Accounting Firm in conjunction with an audit performed at the request of a potential buyer or in support of a security" offering
• A Security Analyst preparing a buy. hold or sell recommendation on a public security

The Due Diligence investigation is normally carried out with the knowledge and cooperation of the management of the entity being investigated.

Should Equity Capital & Securities (London) be mandated to execute a Due Diligence, either to realize an in-house transaction or be appointed by a third party in connection with the situations above-mentioned and/or other situations. Equity Capital & Securities (London) will thoroughly review without being limited to, the following activities of the subject entity:

• Overview of entity
• Capitalization and ownership
• Organization and management
• Relationships with outside organizations
• Description of products and/or services
• Revenues and market share
• Marketing operations
• Customer service
• Inventory control and purchasing
• Production
• Physical distribution
• Computer, communications and information systems
• Financial management
• Legal affairs and litigation
• Security and safety
• Human resources
• Public relations
• Corporate development
• Description of fixed assets
  • Land and buildings
  • Vehicles, equipment and tooling
• Introduction to financial analysis
  • Balance sheet analysis
  • Current assets
  • Non-current assets
  • Liabilities
  • Net worth
• Income statement analysis
  • Revenues
  • Cost of goods sold and gross margin
  • Operating expenses
  • Operating income
  • Non-operating and nonrecurring items
  • Income taxes
  • Net income
  • Capital expenditures
  • Cash flow
  • Financial ratio analysis
  • Income statement projections
  • Balance sheet projections